Bangladesh Bank lending rate
BB cuts lending rate margin by 25 basis points
Banks can now impose a 3.5% margin with SMART for lending
New monetary policy will be less effective against inflation
The lack of coherence between the fiscal and monetary policy stances will make the monetary policy less effective in controlling inflation.
Will BB’s lending rate-setting formula yield expected results?
The Bangladesh Bank has decided to implement a market-based interest rate from July, moving away from the 9 per cent interest rate cap on loans, an initiative that may help the central bank uses its policy rates effectively in its fight against higher inflation.
BB cuts lending rate margin by 25 basis points
Banks can now impose a 3.5% margin with SMART for lending
New monetary policy will be less effective against inflation
The lack of coherence between the fiscal and monetary policy stances will make the monetary policy less effective in controlling inflation.
Will BB’s lending rate-setting formula yield expected results?
The Bangladesh Bank has decided to implement a market-based interest rate from July, moving away from the 9 per cent interest rate cap on loans, an initiative that may help the central bank uses its policy rates effectively in its fight against higher inflation.